Epsilon Archive for Student Projects

Abstract

In rural Malawi, the youth do not have access to credit and adequate
entrepreneurship training. Despite alienation from Microfinance
institutions, there are many Micro and Small Enterprises operating in
the rural informal sector. This study was undertaken to understand how
these entrepreneurs acquire the resources to engage in micro and small
enterprises. To investigate the role that social networks play in
providing the necessary inspiration, skills and resources for rural young
people to participate in entrepreneurship. Using semi-structured
interviews, group discussions, focus group discussions, and key
informant interviews to collect field data in Mpemba, Blantyre District,
Southern Region of Malawi. Social networks are responsible for
socialising young people to desire entrepreneurship by transferring the
necessary skills, social capital and resources. Bank Nkhonde and
church membership; are the social groups that develop social networks
which are important in mentoring the youth for investments. The
cultural context has enabled social networks to be relevant as the
transactions involved in the networks are backed by cultural
obligations and expectations. Women were found to be limited in the
enterprises they pursue due to cultural expectations and sharing of
responsibilities while men were likely to migrate. Social networks act
as a safety net in times of illnesses, funerals and dire need for
communities.